Court Rules Confiscated Gold as Prohibited if Import Conditions Violated; Redemption Not Allowed Without Compliance.

COMMISSIONER OF CUSTOMS (AIRPORT AND GENERAL), IGI AIRPORT Versus MS. MINAKSHI SHARMA

COMMISSIONER OF CUSTOMS (AIRPORT AND GENERAL), IGI AIRPORT Versus MS. MINAKSHI SHARMA - TMI Issues:
The validity of the order permitting redemption of confiscated gold subject to payment of redemption fine.

Summary:
The Commissioner of Customs challenged the order allowing the redemption of confiscated gold by the Revisional Authority. The order was based on the premise that gold does not fall under "prohibited goods" as per Section 2(33) of the Customs Act, 1962. Referring to the case of Nidhi Kapoor v. Principal Commissioner and Additional Secretary to the Government of India & Ors., the court highlighted that goods imported in violation of import conditions also fall under the definition of "prohibited goods." The court emphasized that prohibitions could be absolute or subject to restrictions or regulations, and imports violating such conditions would be considered prohibited goods. The court also noted that restrictions on the import of gold were established in the Foreign Trade Policy (FTP) and the Import-Export Policy (ITC), making it subject to RBI regulatory control. Consequently, the court set aside the order of the Revisional Authority based on the conclusions drawn in the Nidhi Kapoor case.